Zion Lutheran Church was established on June 14, 1886. The Rev. J. Deguisne, a young missionary, presided over the organizational meeting which was held in the home of Albert Thoms. The congregation grew and in 1900 a parsonage and church building was completed.

At various times in its history, Zion Lutheran has been affiliated with neighboring congregations. From 1889 to 1893 Zion and St. John's of Malmo operated as a single parish. The two were rejoined in 1931 and were served by one pastor until 1934. In 1959 a new parish was formed with Nazareth Lutheran of Davey, Nebraska. In 1961 Nazareth and Bethlehem Lutheran Churches, both of Davey, merged. The Zion and Bethlehem Congregations continue under one Pastor.

Until July 7, 1918, services were held entirely in German. The English language was used after this date.